A Need to Know Basis: Groupon Earnings

Groupon reports second-quarter earnings after the bell. Here are the important numbers and angles to keep in mind.

Earnings: Street consensus is for a loss of 2 cents a share (or earnings of 3 cents a share, non-GAAP) on sales of $574.8 million. A year ago, the company lost 34 cents a share (22 cents, non-GAAP) on sales of $392.6 million.

Keep in mind: “Why is every second deal for yoga lesson?” Canaccord asked in a note about the online coupon company. Groupon’s shares are down about 65% since its November IPO, and the company’s been beset by a series of self-inflicted accounting-related problems. It would be a big help if the company showed some solid, quantifiable growth that doesn’t require an accounting degree to understand.

It may, however, have more explaining to after today’s report. While revenue is seen up sharply from a year ago, the sequential growth is seen up only 2.5%, and as Rolfe Winkler noted in this morning’sAhead of the Tape column, how the company’s coming by that sales growth is once again a source of confusion.